Yesterday I brought home the guitar that I put on layaway last month. We did borrow some money through our credit union to make the purchase because, as we have learned, having no debt is actually bad for your credit. (WTF?!?) Yes, it turns out that if you are not beholden to anyone the lenders don't like you. They also don't like it if you pay things off early because they don't make as much interest so, while we could pay off the small sum we borrowed in short order, we are going to make the minimum payments and drag it out for a full year to help reestablish our credit. Blood sucking bastards!
(A quick note on the guitar -- I have yet to take it to work, but I did do a small bit of recording with it and it blew me away. I do believe it will indeed be the last performance guitar I ever need!)
I had made a deal with the wife that, if I get another guitar (yes, I have a few, but they all do something unique. I am not a collector, each has it's utility), she gets to book a trip she's been wanting to take for some time to visit a friend overseas. Our original plan was to pay off the first loan, then take out a second for the trip, thus establishing credit. It turns out it doesn't work that way. After talking with our person at the credit union we have decided to drag the first loan out, save for the trip then take a out a second loan secured by the money we saved. Effectively, we are paying our credit union to help us show lenders that we are good little consumers (what a crazy system!). Hopefully by doing this, though, a farm will not be out of future reach!
I got my tracks back from the studio and the project I recorded almost 17 years ago is now in my studio program on my laptop. I have plans to meet with a co-producer for the redux to listen to them and make decisions about what to keep, what can be fixed, what to re-record, and anything else later this week. It's happening!
The move out of the old house is more-or-less complete. There is a small amount of uncut firewood, a garden cart, the compost pile (hell yes we're taking it with us!), and the pen in which we kept the chickens (which we thought could be converted into a temporary/moveable greenhouse, but we're not sure if we can carry it over in the pickup truck) still at the old place. All evidence suggests that our old landlords have defaulted on the property, so we don't feel a particular hurry to have it all removed by any deadline. We will be collecting it all soon -- we need to get a garden started here and we need that compost! Now we need to sort and organize the boxes of stuff here at the new house...
In sad news, we lost another chicken this week. Dumpling, one of our Ameraucanas, was acting like she was sneezing at first. Then she started opening her beak and stretching out her neck and I thought she maybe had something stuck in her craw. Then she began to cough up blood and we became very concerned. I tried to see if there was anything I could do but it soon became obvious that she wasn't going to make it. I ended up having to put her out of her misery. The whole thing was awful. My son and I patrolled the backyard the next day and hopefully removed anything that might be harmful. They are not the most selective when it comes to what they'll eat. I am guessing she found a piece of something she thought was food that was instead sharp and dangerous (I was surprised to find many things in the yard that matched that description).
The pantry is going to be much more user-friendly at this new place. I am looking forward not just to stocking it, but actually looking forward to USING it. That's going to be huge!
I still need to complete our taxes. The move really put a wrench in things there. Hopefully I can get that done over Easter weekend.
Lots on the plate. It's all about finding balance right now.
Showing posts with label debt. Show all posts
Showing posts with label debt. Show all posts
Wednesday, April 4, 2012
Tuesday, October 4, 2011
Declaration of the Occupation of New York City
From: http://nycga.cc/2011/09/30/declaration-of-the-occupation-of-new-york-city/
Declaration of the Occupation of New York City
Posted on September 30, 2011 by NYCGA
As we gather together in solidarity to express a feeling of mass injustice, we must not lose sight of what brought us together. We write so that all people who feel wronged by the corporate forces of the world can know that we are your allies.
As one people, united, we acknowledge the reality: that the future of the human race requires the cooperation of its members; that our system must protect our rights, and upon corruption of that system, it is up to the individuals to protect their own rights, and those of their neighbors; that a democratic government derives its just power from the people, but corporations do not seek consent to extract wealth from the people and the Earth; and that no true democracy is attainable when the process is determined by economic power. We come to you at a time when corporations, which place profit over people, self-interest over justice, and oppression over equality, run our governments. We have peaceably assembled here, as is our right, to let these facts be known.
They have taken our houses through an illegal foreclosure process, despite not having the original mortgage.
They have taken bailouts from taxpayers with impunity, and continue to give Executives exorbitant bonuses.
They have perpetuated inequality and discrimination in the workplace based on age, the color of one’s skin, sex, gender identity and sexual orientation.
They have poisoned the food supply through negligence, and undermined the farming system through monopolization.
They have profited off of the torture, confinement, and cruel treatment of countless animals, and actively hide these practices.
They have continuously sought to strip employees of the right to negotiate for better pay and safer working conditions.
They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.
They have consistently outsourced labor and used that outsourcing as leverage to cut workers’ healthcare and pay.
They have influenced the courts to achieve the same rights as people, with none of the culpability or responsibility.
They have spent millions of dollars on legal teams that look for ways to get them out of contracts in regards to health insurance.
They have sold our privacy as a commodity.
They have used the military and police force to prevent freedom of the press. They have deliberately declined to recall faulty products endangering lives in pursuit of profit.
They determine economic policy, despite the catastrophic failures their policies have produced and continue to produce.
They have donated large sums of money to politicians, who are responsible for regulating them.
They continue to block alternate forms of energy to keep us dependent on oil.
They continue to block generic forms of medicine that could save people’s lives or provide relief in order to protect investments that have already turned a substantial profit.
They have purposely covered up oil spills, accidents, faulty bookkeeping, and inactive ingredients in pursuit of profit.
They purposefully keep people misinformed and fearful through their control of the media.
They have accepted private contracts to murder prisoners even when presented with serious doubts about their guilt.
They have perpetuated colonialism at home and abroad. They have participated in the torture and murder of innocent civilians overseas.
They continue to create weapons of mass destruction in order to receive government contracts. *
To the people of the world,
We, the New York City General Assembly occupying Wall Street in Liberty Square, urge you to assert your power.
Exercise your right to peaceably assemble; occupy public space; create a process to address the problems we face, and generate solutions accessible to everyone.
To all communities that take action and form groups in the spirit of direct democracy, we offer support, documentation, and all of the resources at our disposal.
Join us and make your voices heard!
*These grievances are not all-inclusive.
Declaration of the Occupation of New York City
Posted on September 30, 2011 by NYCGA
As we gather together in solidarity to express a feeling of mass injustice, we must not lose sight of what brought us together. We write so that all people who feel wronged by the corporate forces of the world can know that we are your allies.
As one people, united, we acknowledge the reality: that the future of the human race requires the cooperation of its members; that our system must protect our rights, and upon corruption of that system, it is up to the individuals to protect their own rights, and those of their neighbors; that a democratic government derives its just power from the people, but corporations do not seek consent to extract wealth from the people and the Earth; and that no true democracy is attainable when the process is determined by economic power. We come to you at a time when corporations, which place profit over people, self-interest over justice, and oppression over equality, run our governments. We have peaceably assembled here, as is our right, to let these facts be known.
They have taken our houses through an illegal foreclosure process, despite not having the original mortgage.
They have taken bailouts from taxpayers with impunity, and continue to give Executives exorbitant bonuses.
They have perpetuated inequality and discrimination in the workplace based on age, the color of one’s skin, sex, gender identity and sexual orientation.
They have poisoned the food supply through negligence, and undermined the farming system through monopolization.
They have profited off of the torture, confinement, and cruel treatment of countless animals, and actively hide these practices.
They have continuously sought to strip employees of the right to negotiate for better pay and safer working conditions.
They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.
They have consistently outsourced labor and used that outsourcing as leverage to cut workers’ healthcare and pay.
They have influenced the courts to achieve the same rights as people, with none of the culpability or responsibility.
They have spent millions of dollars on legal teams that look for ways to get them out of contracts in regards to health insurance.
They have sold our privacy as a commodity.
They have used the military and police force to prevent freedom of the press. They have deliberately declined to recall faulty products endangering lives in pursuit of profit.
They determine economic policy, despite the catastrophic failures their policies have produced and continue to produce.
They have donated large sums of money to politicians, who are responsible for regulating them.
They continue to block alternate forms of energy to keep us dependent on oil.
They continue to block generic forms of medicine that could save people’s lives or provide relief in order to protect investments that have already turned a substantial profit.
They have purposely covered up oil spills, accidents, faulty bookkeeping, and inactive ingredients in pursuit of profit.
They purposefully keep people misinformed and fearful through their control of the media.
They have accepted private contracts to murder prisoners even when presented with serious doubts about their guilt.
They have perpetuated colonialism at home and abroad. They have participated in the torture and murder of innocent civilians overseas.
They continue to create weapons of mass destruction in order to receive government contracts. *
To the people of the world,
We, the New York City General Assembly occupying Wall Street in Liberty Square, urge you to assert your power.
Exercise your right to peaceably assemble; occupy public space; create a process to address the problems we face, and generate solutions accessible to everyone.
To all communities that take action and form groups in the spirit of direct democracy, we offer support, documentation, and all of the resources at our disposal.
Join us and make your voices heard!
*These grievances are not all-inclusive.
Monday, June 27, 2011
How Obama Can Fix the Housing Market and the Economy
From HuffingtonPost.com, By John R. Talbott:
Right now there are millions of residential properties that have been foreclosed on and are held by the banks. In addition there are tens of millions more homes that are underwater, that is the mortgage loan balance is greater than the current market value of the home. Such a large overhang of troubled mortgages and properties prevents the housing market from properly clearing and establishing a true floor to home prices. The uncertainty in the housing market as well as this debt overhang are the prime reasons consumers aren't buying, the economy is stalled and unemployment is stuck at a seemingly permanently high level. Companies are sitting on lots of idle cash, but before they invest it or begin to hire again they have to see consumer demand return for their products and services.
And Obama needs to do something about the economy if he hopes to win reelection in 2012. The big key electoral battleground states are already shaping up as Florida, Ohio and Pennsylvania, all of which are suffering from weak economies with high unemployment. Cutting taxes or increasing government spending doesn't seem to make much sense in a country drowning in government deficits and debt, especially given that previous tax cuts and government stimuli didn't seem to help much. The Fed has lowered short term interest rates about as low as they can go and no one seems enthused about the Fed pursuing any additional asset purchases financed with newly printed money as QE1 and QE2 seemed to have done little to help the economy but certainly harmed the value of the dollar. It would probably be prudent to look at ways to lower the deficit and get the debt under control, but it is hard to see how those efforts will do much to help stimulate consumer demand in the short run. What is Obama to do?
Before the invention of mortgage securitizations and CDO's in which mortgages are packaged by banks into securities and sold upstream to investors, mortgages were typically held on the books of the bank that issued them. This made it much easier for banks to negotiate changes in the terms of a troubled mortgage because any bank loss generated by forgiving a portion of the principal or interest on the mortgage loan would be offset by the fact that a successful restructuring of the loan would move the loan off the bank's list of non-performing or delinquent loans.
Securitization has broken this link and led banks to be very slow in offering any debt forgiveness on outstanding troubled loans. The reason is quite simple really. With securitization, one mortgage may be held by hundreds of different investors who are difficult to organize and have no real incentive to get the troubled loan off their books quickly, especially if it means recognizing a loss, much less do something solely to stimulate the general economy. There is an easy solution to this dilemma, but it needs the involvement of government to organize the effort as no single party in the securitization food chain has the proper motivation to get the ball rolling.
Right now, homebuyers with good credit and proper down payments can get thirty-year fixed-rate mortgages for around 4.5%. But this rate is not available to people with troubled mortgages or who are sitting on homes that are underwater and wish to remain in their homes. The government should step in and offer a 3% fixed-rate thirty-year mortgage to any person, regardless of credit worthiness or delinquency history, who is refinancing an existing underwater mortgage or any properly qualified person with good credit buying a foreclosed property from a bank. The new mortgage could be guaranteed by the U.S. Treasury and then packaged and sold upstream so the government's debt load is not increased.
Take a simple example. Imagine Joe and Mary bought their house for $400,000 in 2004 with no money down. Assume that the house today is worth $300,000. No bank would be anxious to refinance this $400,000 loan as the home is clearly worth less than the loan balance and the bank does not want to recognize a loss that may threaten its solvency. In addition, Joe and Mary may have financed their home purchase with an ARM so they may have seen their mortgage interest costs explode from an initial teaser rate of 2% or 3% to say 8% or 10% annually and their income just can't cover this level of interest expense.
Assume the Treasury steps in and offers Joe and Mary a refinancing deal in which they pay only a 3% fixed interest cost on a new, no closing costs $400,000 loan. There is now no risk to the homeowner that this rate may increase in the future. Joe and Mary can stop worrying about making their mortgage payments and go back to focusing on their real jobs which would have to help the overall economy. The plan should limit the refinancing to the currently amortized amount of the original loan and avoid any increases to the original principal amount the bank may have added on to cover penalty fees, delinquency charges, missed interest payments, deferred rate increases, etc.
Think of the benefits of such a deal to everyone involved.
Of course, all risk has not been completely eliminated. There is still a risk that Joe and Mary may default on the new loan. This is problematic because the face value of the loan, $400,000, is still greater than the current market value of the home, $300,000. But this risk is minimized because the carrying cost to Joe and Mary has been so reduced and fixed as to make it very desirable for them to want to stay in their home. They aren't going to get this low of rate if they decide to sell the house and move.
You could lower this default risk even further by making the new loan clearly recourse to Joe and Mary's other assets in case of default or by making the new loan an interest only loan. By going the interest only route, the $400,000 repayment becomes a balloon payment due in thirty years further lowering Joe and Mary's carrying costs thus increasing its affordability and reducing the risk of default. Given any reasonable forecast of future inflation, such a repayment amount should be easily covered by the home value at that time in the future. As a matter of fact, in this example, if general inflation averages anything more than 1% a year for the next thirty years the home value catches up to the loan balance.
Qualified homebuyers with good credit who wish to buy foreclosed properties directly from the banks should be offered similar payment terms as this would help clean up the overhang of unsold and foreclosed properties on the market. Also, if Joe and Mary wanted to just get out and sell their home for less than the mortgage balance, the prospective home purchaser could be offered these attractive financing terms so long as he or she met all other credit and down payment requirements. Here, the transactions should occur at the fair market value of the home so the banks would have to recognize some loss, but much less than they otherwise would have without this plan.
This economy is not going to bounce back. We had too big a bubble in too big a sector of our economy to ever bounce back to the high prices, crazy borrowing and wild consumption that existed before the crisis. But if Obama doesn't do something to address the debt problems homeowners and the financial system face, the housing market will lie dormant for years, the economy will crawl along anemically for decades and Obama himself may join the ranks of the unemployed in 2012.
[READ THE ORIGINAL ARTICLE HERE]
Right now there are millions of residential properties that have been foreclosed on and are held by the banks. In addition there are tens of millions more homes that are underwater, that is the mortgage loan balance is greater than the current market value of the home. Such a large overhang of troubled mortgages and properties prevents the housing market from properly clearing and establishing a true floor to home prices. The uncertainty in the housing market as well as this debt overhang are the prime reasons consumers aren't buying, the economy is stalled and unemployment is stuck at a seemingly permanently high level. Companies are sitting on lots of idle cash, but before they invest it or begin to hire again they have to see consumer demand return for their products and services.
And Obama needs to do something about the economy if he hopes to win reelection in 2012. The big key electoral battleground states are already shaping up as Florida, Ohio and Pennsylvania, all of which are suffering from weak economies with high unemployment. Cutting taxes or increasing government spending doesn't seem to make much sense in a country drowning in government deficits and debt, especially given that previous tax cuts and government stimuli didn't seem to help much. The Fed has lowered short term interest rates about as low as they can go and no one seems enthused about the Fed pursuing any additional asset purchases financed with newly printed money as QE1 and QE2 seemed to have done little to help the economy but certainly harmed the value of the dollar. It would probably be prudent to look at ways to lower the deficit and get the debt under control, but it is hard to see how those efforts will do much to help stimulate consumer demand in the short run. What is Obama to do?
Before the invention of mortgage securitizations and CDO's in which mortgages are packaged by banks into securities and sold upstream to investors, mortgages were typically held on the books of the bank that issued them. This made it much easier for banks to negotiate changes in the terms of a troubled mortgage because any bank loss generated by forgiving a portion of the principal or interest on the mortgage loan would be offset by the fact that a successful restructuring of the loan would move the loan off the bank's list of non-performing or delinquent loans.
Securitization has broken this link and led banks to be very slow in offering any debt forgiveness on outstanding troubled loans. The reason is quite simple really. With securitization, one mortgage may be held by hundreds of different investors who are difficult to organize and have no real incentive to get the troubled loan off their books quickly, especially if it means recognizing a loss, much less do something solely to stimulate the general economy. There is an easy solution to this dilemma, but it needs the involvement of government to organize the effort as no single party in the securitization food chain has the proper motivation to get the ball rolling.
Right now, homebuyers with good credit and proper down payments can get thirty-year fixed-rate mortgages for around 4.5%. But this rate is not available to people with troubled mortgages or who are sitting on homes that are underwater and wish to remain in their homes. The government should step in and offer a 3% fixed-rate thirty-year mortgage to any person, regardless of credit worthiness or delinquency history, who is refinancing an existing underwater mortgage or any properly qualified person with good credit buying a foreclosed property from a bank. The new mortgage could be guaranteed by the U.S. Treasury and then packaged and sold upstream so the government's debt load is not increased.
Take a simple example. Imagine Joe and Mary bought their house for $400,000 in 2004 with no money down. Assume that the house today is worth $300,000. No bank would be anxious to refinance this $400,000 loan as the home is clearly worth less than the loan balance and the bank does not want to recognize a loss that may threaten its solvency. In addition, Joe and Mary may have financed their home purchase with an ARM so they may have seen their mortgage interest costs explode from an initial teaser rate of 2% or 3% to say 8% or 10% annually and their income just can't cover this level of interest expense.
Assume the Treasury steps in and offers Joe and Mary a refinancing deal in which they pay only a 3% fixed interest cost on a new, no closing costs $400,000 loan. There is now no risk to the homeowner that this rate may increase in the future. Joe and Mary can stop worrying about making their mortgage payments and go back to focusing on their real jobs which would have to help the overall economy. The plan should limit the refinancing to the currently amortized amount of the original loan and avoid any increases to the original principal amount the bank may have added on to cover penalty fees, delinquency charges, missed interest payments, deferred rate increases, etc.
Think of the benefits of such a deal to everyone involved.
- The homeowner is given comfort that his rate will be fixed at a low affordable rate and not be subject to any future increases thus decreasing the likelihood of a possible default in the future.
- The homeowner avoids a default which can damage his or her credit rating and avoids the trauma of possibly having to claim personal bankruptcy.
- The banks and investors who hold the mortgage get out without taking a capital loss so the financial system is not further compromised. Banks, insurance companies and pension funds who hold this mortgage paper can all breathe easier.
- The government has no additional annual cost to carrying these mortgages as the 3% interest they receive on the mortgage more than adequately covers their 3% cost of borrowing. There is no increase in the current government deficit as a result of this plan.
- There is no loan forgiveness for the overaggressive homebuyer. He or she still needs to pay off the full amount of his or her original loan so other homeowners who were more conservative in their borrowing will not feel like this is a unfair giveaway to aggressive homebuyers.
- Entire neighborhoods should improve as a large number of underwater mortgages are refinanced and many foreclosed properties find new owners.
- The economy should improve as debt burdens on consumers ease substantially, the housing price decline moderates and the financial sector is strengthened as it finally deals with its bad loan exposure.
Of course, all risk has not been completely eliminated. There is still a risk that Joe and Mary may default on the new loan. This is problematic because the face value of the loan, $400,000, is still greater than the current market value of the home, $300,000. But this risk is minimized because the carrying cost to Joe and Mary has been so reduced and fixed as to make it very desirable for them to want to stay in their home. They aren't going to get this low of rate if they decide to sell the house and move.
You could lower this default risk even further by making the new loan clearly recourse to Joe and Mary's other assets in case of default or by making the new loan an interest only loan. By going the interest only route, the $400,000 repayment becomes a balloon payment due in thirty years further lowering Joe and Mary's carrying costs thus increasing its affordability and reducing the risk of default. Given any reasonable forecast of future inflation, such a repayment amount should be easily covered by the home value at that time in the future. As a matter of fact, in this example, if general inflation averages anything more than 1% a year for the next thirty years the home value catches up to the loan balance.
Qualified homebuyers with good credit who wish to buy foreclosed properties directly from the banks should be offered similar payment terms as this would help clean up the overhang of unsold and foreclosed properties on the market. Also, if Joe and Mary wanted to just get out and sell their home for less than the mortgage balance, the prospective home purchaser could be offered these attractive financing terms so long as he or she met all other credit and down payment requirements. Here, the transactions should occur at the fair market value of the home so the banks would have to recognize some loss, but much less than they otherwise would have without this plan.
This economy is not going to bounce back. We had too big a bubble in too big a sector of our economy to ever bounce back to the high prices, crazy borrowing and wild consumption that existed before the crisis. But if Obama doesn't do something to address the debt problems homeowners and the financial system face, the housing market will lie dormant for years, the economy will crawl along anemically for decades and Obama himself may join the ranks of the unemployed in 2012.
[READ THE ORIGINAL ARTICLE HERE]
Monday, May 23, 2011
Money Lessons for High School Grads
I'm posting a lot today. I suppose that's what happens when you're actually on the computer more...
Just came across this article, Money Lessons For Every High School Grad, By Zac Bissonnette on MarketWatch. The key points:
1. Debt is slavery
2. College debt takes its toll
3. Rich friends may be broke
4. Materialism is misery
5. TV makes you feel poor
So true.
[CLICK HERE FOR THE ENTIRE ARTICLE]
Just came across this article, Money Lessons For Every High School Grad, By Zac Bissonnette on MarketWatch. The key points:
1. Debt is slavery
2. College debt takes its toll
3. Rich friends may be broke
4. Materialism is misery
5. TV makes you feel poor
So true.
[CLICK HERE FOR THE ENTIRE ARTICLE]
Monday, May 9, 2011
Washington State Must Really Be Broke
I have mentioned the sale of the company I work for here and there. I am now working for the new owners but feel I have had to sell my soul to do so. I am not sure how sustainable it is going to be.
I also mentioned that the State of Washington came after me for business taxes in there and here. Real quick, here's what happened in a nutshell: I was asked by the company I worked for to whom I was a sub-contractor -- not an employee, despite having to work on their terms ("Do you want to work for me or not") -- to sign a two-and-a-half-year back-dated form stating that I had my own business and operated as an independent contractor. No big deal, I thought -- I have "owned and operated" this business over the past ten years in Oregon, North Carolina, and now, Washington.
A couple weeks later I received a notice from the State of Washington saying that I was operating a business without a license and had not been paying small business taxes. I called and said that I had never heard of such a thing and was told, "Yeah, you'll find that Washington does things a little differently." I asked how I was supposed to know about this different way of doing things and was told this was pretty much the normal way -- do business in the state for a few years and eventually they'll find ya and ding ya. Wow! Thanks, Washington!
So I bought my license (fortunately a small business license is a lot cheaper than exams and licenses for manicurists, estheticians, and hair stylists which cost us hundreds of dollars), filed and paid my taxes. After a couple months of phone calls, mailings, and online interactions, the State of Washington was almost $150 richer. I would almost be willing to bet they paid more than that in time and effort to get that money out of me. Whatever.
I have recently learned that -- at the same time all of this was happening -- the State of Washington was going after my former employers for whom I was an independent contractor (as were several others) saying that they owe back taxes for us as employees.
Basically, the state went after the people and the business saying, "These people are employees or they're not employees, but either way we're getting money from someone."
I also learned just the other day that, if a waitperson in Washington is tipped voluntarily, that's fine. However, if the tip is automatic (i.e. large parties are often have a gratuity automatically added onto their bill), the business (i.e. restaurant, bar, etc.) is expected to pay taxes on that money. What the hell?!?
Turns out the state has gone after the previous owners for back taxes on automatic gratuities as well.
I knew that the State of Washington was having financial trouble, but I had no idea it was this bad! It's like they're going through the sofa cushions for loose change.
In only slightly related news, we had dinner with some friends this evening who have been gradually building a business over almost twenty years in construction and renovation. A few years ago they were worth around $3 million, but they have been spending all their time and money the past few years trying to keep the business alive. Last fall they lost the home they were living in and moved to one of their vacant properties. This week they learned they are losing everything -- including the home they live in now and their retirement property. I am so impressed with their amazing attitude about the whole thing. With what money they had they bought a used RV and are planning to pack up the family and hit the road. They say they've always wanted to travel and now is their chance. Amazing.
How are things where you are?
I also mentioned that the State of Washington came after me for business taxes in there and here. Real quick, here's what happened in a nutshell: I was asked by the company I worked for to whom I was a sub-contractor -- not an employee, despite having to work on their terms ("Do you want to work for me or not") -- to sign a two-and-a-half-year back-dated form stating that I had my own business and operated as an independent contractor. No big deal, I thought -- I have "owned and operated" this business over the past ten years in Oregon, North Carolina, and now, Washington.
A couple weeks later I received a notice from the State of Washington saying that I was operating a business without a license and had not been paying small business taxes. I called and said that I had never heard of such a thing and was told, "Yeah, you'll find that Washington does things a little differently." I asked how I was supposed to know about this different way of doing things and was told this was pretty much the normal way -- do business in the state for a few years and eventually they'll find ya and ding ya. Wow! Thanks, Washington!
So I bought my license (fortunately a small business license is a lot cheaper than exams and licenses for manicurists, estheticians, and hair stylists which cost us hundreds of dollars), filed and paid my taxes. After a couple months of phone calls, mailings, and online interactions, the State of Washington was almost $150 richer. I would almost be willing to bet they paid more than that in time and effort to get that money out of me. Whatever.
I have recently learned that -- at the same time all of this was happening -- the State of Washington was going after my former employers for whom I was an independent contractor (as were several others) saying that they owe back taxes for us as employees.
Basically, the state went after the people and the business saying, "These people are employees or they're not employees, but either way we're getting money from someone."
I also learned just the other day that, if a waitperson in Washington is tipped voluntarily, that's fine. However, if the tip is automatic (i.e. large parties are often have a gratuity automatically added onto their bill), the business (i.e. restaurant, bar, etc.) is expected to pay taxes on that money. What the hell?!?
Turns out the state has gone after the previous owners for back taxes on automatic gratuities as well.
I knew that the State of Washington was having financial trouble, but I had no idea it was this bad! It's like they're going through the sofa cushions for loose change.
In only slightly related news, we had dinner with some friends this evening who have been gradually building a business over almost twenty years in construction and renovation. A few years ago they were worth around $3 million, but they have been spending all their time and money the past few years trying to keep the business alive. Last fall they lost the home they were living in and moved to one of their vacant properties. This week they learned they are losing everything -- including the home they live in now and their retirement property. I am so impressed with their amazing attitude about the whole thing. With what money they had they bought a used RV and are planning to pack up the family and hit the road. They say they've always wanted to travel and now is their chance. Amazing.
How are things where you are?
Thursday, April 28, 2011
General Update
Here's what's up in our world:
The wife's serger is still in the shop. Turns out it needs a needle plate (?), so that's going to take another 7-10 days. Bummer. It's just as well as the sewing table probably won't be here for another couple weeks (being delivered by mother-in-law from Oregon) and we're not making speedy progress in getting the computer backed up that is currently on the desk where the sewing table will go. We need to get on that.
The outdoor seeds have not sprouted. The weather is continuing to dip 5-10 degrees below normal every night and sunshine is still sparse. It's almost May! C'mon, spring! The indoor seeds are doing well -- all but the wonderberry and marmande tomatoes. I have replanted marmande seeds (again). Hopefully the weather will warm up before the tomatoes and peppers get too big!
The CDs we hung around the garden seem to be doing an excellent job. I've seen the crows several times but have yet to see a bird in our front yard.
The chickens were moved this afternoon from the side yard to the backyard. The backyard still has spots that haven't fully recovered, but we'll try to keep the chicken tractor away from those areas this round. The side yard is not flat and the neighbors have a new puppy that makes us (and the chickens) a little nervous, so it's nice to get them out of there.
I am just waiting for one sunny day to take the tent and backpacks outside and treat them with UV/waterproof spray. If I can make time and the weather cooperates Monday or Tuesday, perhaps the family and I will take a drive and possibly do a day hike up around Mt. Rainier. Here's hoping!
Tomorrow I plan to make the final payment and close the account on a loan I've been nursing for 16 years! I'm not proud to have has this debt for so long, but I am thrilled to be putting it behind me. It's amazing how easy it is to pay things off when there are less of them to pay each month!
The wife's serger is still in the shop. Turns out it needs a needle plate (?), so that's going to take another 7-10 days. Bummer. It's just as well as the sewing table probably won't be here for another couple weeks (being delivered by mother-in-law from Oregon) and we're not making speedy progress in getting the computer backed up that is currently on the desk where the sewing table will go. We need to get on that.
The outdoor seeds have not sprouted. The weather is continuing to dip 5-10 degrees below normal every night and sunshine is still sparse. It's almost May! C'mon, spring! The indoor seeds are doing well -- all but the wonderberry and marmande tomatoes. I have replanted marmande seeds (again). Hopefully the weather will warm up before the tomatoes and peppers get too big!
The CDs we hung around the garden seem to be doing an excellent job. I've seen the crows several times but have yet to see a bird in our front yard.
The chickens were moved this afternoon from the side yard to the backyard. The backyard still has spots that haven't fully recovered, but we'll try to keep the chicken tractor away from those areas this round. The side yard is not flat and the neighbors have a new puppy that makes us (and the chickens) a little nervous, so it's nice to get them out of there.
I am just waiting for one sunny day to take the tent and backpacks outside and treat them with UV/waterproof spray. If I can make time and the weather cooperates Monday or Tuesday, perhaps the family and I will take a drive and possibly do a day hike up around Mt. Rainier. Here's hoping!
Tomorrow I plan to make the final payment and close the account on a loan I've been nursing for 16 years! I'm not proud to have has this debt for so long, but I am thrilled to be putting it behind me. It's amazing how easy it is to pay things off when there are less of them to pay each month!
Wednesday, April 20, 2011
Beans and Sewing Machines
Today was not as productive as I'd hoped. I have one lesson that I teach each week and it fell through. The other appointment that I had also fell through.
My wife did get her serger (overlocking sewing machine) in to be serviced. We have been discussing curtains for the living room to replace the blinds and a cover for the futon, so we looked at some ideas there. At least on the curtains she agreed that she could probably make some that fit better and that we liked better for less than what we could buy. We did buy a new glass measuring cup and a set of stainless steel measuring spoons in our continuing effort to cut down on plastic, especially in the kitchen. We also stocked up on a few essentials at Costco.
After we returned home we took advantage of the blue skies as we moved the chickens and picked up the yard a bit. I made a quick run to the grocery store, made a payment on yet another debt, and finished replanting this round of indoor seed starts.
The family spent the rest of the evening relaxing. After the son went to bed the wife and I finished the pinto bean canning project. As I type this the cans are cooling and the lids are beginning to pop sealed. They look great and I am looking forward to trying them out!
All day long I wore my new "barefoot" shoes. I am feeling it in my calves and arches. Time to get back in shape...
My wife did get her serger (overlocking sewing machine) in to be serviced. We have been discussing curtains for the living room to replace the blinds and a cover for the futon, so we looked at some ideas there. At least on the curtains she agreed that she could probably make some that fit better and that we liked better for less than what we could buy. We did buy a new glass measuring cup and a set of stainless steel measuring spoons in our continuing effort to cut down on plastic, especially in the kitchen. We also stocked up on a few essentials at Costco.
After we returned home we took advantage of the blue skies as we moved the chickens and picked up the yard a bit. I made a quick run to the grocery store, made a payment on yet another debt, and finished replanting this round of indoor seed starts.
The family spent the rest of the evening relaxing. After the son went to bed the wife and I finished the pinto bean canning project. As I type this the cans are cooling and the lids are beginning to pop sealed. They look great and I am looking forward to trying them out!
All day long I wore my new "barefoot" shoes. I am feeling it in my calves and arches. Time to get back in shape...
Subscribe to:
Posts (Atom)